Technicals | May 03 2016
By Michael Gable
Our market staged a lovely turnaround yesterday. Having been down 70pts in the morning, we managed to finish lower by only 9 points. We covered off last week on our charting view for the S&P/ASX 200 Index which is edging higher towards our target, but we are also edging more towards the view that we will experience a fairly shallow correction once we get there. Whilst everyone is expecting a big sell-off in the month of May, we are bucking the trend and would not be surprised to see a milder consolidation under 5300. You read it here first.
This week there is a lot of attention on the banks reporting and today's RBA decision and federal budget. All of these events have been covered to death in the media and it only causes investors to freeze up. Since we are in the business of making money, we will look for the opportunities. We also have some more commentary on Gold.
Our prior comment on gold was on 23 February when it was trading around [USD] $1227. We noted the "higher high" and suggested that it would be very bullish if gold could hold the $1150 – $1200 area. Our upside target was stated as $1480. Price action continues to look bullish with gold last week breaking above its recent trading range. Gold should now therefore continue higher towards our target of $1480.
Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
.jpg)
Disclaimer
Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
